In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green...

This study investigated the most efficient and successful approach (i.e. the pigovian tax or market for pollution rights) in Niger-Delta environmental pollution control. To achieve this objective, research questions were raised, hypotheses were formulated and a review of extent literature was...

Far from being used to secure a "double dividend" by reducing distorting taxes, revenues from environmental taxes seem quite often to be earmarked to particular spending programs. In the US, for example, a range of such taxes feed into environmental trust funds. Such earmarking runs counter to...

This paper examines the complications posed by pre-existing tax distortions in the economy, for the evaluation of a variety of subsidy policies that affect the environment. These complications include not only the efficiency cost of financing the subsidy by distortionary taxation, but also the...

Many environmental policies including the Kyoto Protocol, the Acid Rain Program, the Montreal Protocol and the phase-out of leaded gas are designed to achieve a target level of abatement within a specified period of time. This paper examines how pollution abatement should be allocated over time...

This chapter examines government policy alternatives for protecting the environment. We compare environmentally motivated taxes and various non-tax environmental policy instruments in terms of their efficiency and distributional impacts. Much of the analysis is performed in a second-best setting...